Bank-Roll management

I'm curious as to what all of you do with decent size bank-rolls. I'm earning some interest on mine.

>>I'm curious as to what all of you do with decent size bank-rolls. I'm earning some interest on mine.<<

Stealth, one possibility is to keep a significant portion of total net worth (30-70%) in a marginable equities account and generally keep margins between 0-5%. Use margin as only cash source for playing BJ with a national bank checking account directly linked to the equities one. Size maximum bets to 1/1000 of net portfolio value (or something more aggressive depending on personal preferences).

A 200 max bet lost correlates to only 20% margin value. Even with that unlikely loss, a 50% concurrent drop in equity value will not result in a margin call. The fluctuations in market prices far exceed BJ bankroll volatility and make the inevitable playing swings a lot easier to deal with.

Equities have the best long-term ROI; 15% annually on a long-term basis is doable, a number of people do better than that with due diligence. There are definite tax advantages as well. As with BJ21 for casno advantage play, there are a number of good sources [e.g. Investors Hub}of information to maximize ROI.

This bankroll investment method keeps all the funds working all the time and helps psychologically with - SD's.

Good cards,

wc21

I guess the reason for my original post was first to create some dialogue on an important subject. I have a feeling that some people hold wads of Ben Franklins in their mattress. That is NOT the best thing to do with money. Money is the ultimate tool to create more money.

Personally, I'm in a situation where I carry some debt on real estate holdings. I also have an unsecured line of credit running some debt too at 8.99%. If I pay down the l.o.c. with wins or even store the entire bankroll there, I effectively save 8.99%.

I keep track of my wins and loses including my bankroll on what I call a 'Play & Win/Loss Tracking Sheet'. The bankroll was developed from playing bj. My gaming bankroll is only shown on paper. I constantly use the money. It's possible that I may even lose all the money on some kind of risky investment. Usually though, what happens is I will invest it into something that will return me sometimes double or triple in a short time period. Regardless, the gaming bankroll only fluctuates when I play games. I play bj mostly.

So whether I burn the physical $ on the wife in clothing shops at Ceasers LV or invest it into a triple return, the figure on the tracking sheet remains and only fluctuates when I play casino games.

The question I struggle with is; Should I add to my gaming bankroll? I could supplement it by funding it if I have extra $ that come in from a successful investment. This in turn would allow me to bet larger and should increase the size of the gaming bankroll much faster.

Comments?

"The question I struggle with is; Should I add to my gaming bankroll?"

As I am not entirely clear on the question (did you mean overall portfolio investment division or just the reinvestment of returns from other investments into blackjack?) Either way, it comes down to risk v return...

For me, Blackjack is just another investment. What it comes down to is risk vs return, and how much risk you are willing to accept for the corresponding return. ie...when deciding between stocks and bonds, depending on my long term goals, I may very well decide on a 70/30 split in favor of stocks, which offer a better return but of course, more risk to bear in return for that. I look at blackjack as a risky investment, probably about as risky as an equity investment in a small relatively unknown company. However, you may consider yourself to be a better player then I do myself, thus you may place a different risk value on your blackjack investment. (or may have more tracked historical data from which to calculate your actual fluctuation).

Overall, you should take a look at your entire investment (blackjack and otherwise), their corresponding returns and determine if the additional return you can obtain from increasing your blackjack bankroll (ie..placing a higher percentage of total investment capital in blackjack, or perhaps reinvesting some of your non-blackjack returns into your bankroll) is worth the incremental risk. Although there are finance calculations you can use to determine this risk vs return ratio, everybody's risk tollerance is different. So generally what I do is just calculate the greater return I will obtain, and then use my intuition to determine if the added risk is worth it. This "intuition" will incorporate your individual risk tollerance level.

Hope some of this helps..

D

""The question I struggle with is; Should I add to my gaming bankroll? I could supplement it by funding it if I have extra $ that come in from a successful investment. This in turn would allow me to bet larger and should increase the size of the gaming bankroll much faster."

Most players have a siginificant percentage of their net worth invested in equities; history has shown stocks provide one of the top long-term investment returns. It makes sense to take advantage of this capital and to increase overall return by borrowing against some of this capital to provide whatever is needed at the desired level of risk to play 21.

If are playing a winning game and also play a sufficient amount of time that this advantage will result in a profit most years, then it makes sense to invest more.

IMHO, it does not make sense to have a separate bankroll for BJ or to even think in terms of a BJ bankroll. Like equities and other business opportunities, this is an investment to make $$. Sizing max bets in proportion to overall stock portfolio value allows one to increase bets as investments profit.

I don't take out a home equity loan to invest in the market or to play BJ; I do use stock equity margin to provide funds for playing 21 to avoid the opportunity costs from losing the equity gains I would miss by selling stocks to play BJ. The after-tax cost of margin capital is approximately 3% annually, while expected market gains are 15%. It doesn't make sense to invest less in the stock market to play 21.

wc21

IMHO, it does not make sense to have a separate bankroll for BJ or to even think in terms of a BJ bankroll. (skip)

Sizing max bets in proportion to overall stock portfolio value allows one to increase bets as investments profit.

I've often struggled with this way of thinking. It does possibly make sense though if one is playing a winning game. However, some people will say; BJ should stand more on its own bankroll. A lot depends upon how much of an advantage you are actually playing with and how much risk you're willing to tolerate.

I realized that a few years ago when I began making money playing. I decided to invest half my playing BR into a retirement fund, "locking" it up and setting free after tax dollars which got added back to my BR. So instead of having 10K I had 5K free, 5K locked, and an extra 2K after tax bucks for a total of 12K BR. The 7K free was also banked and gaining interest all of the time, and use casino credit if possible. I could take out 7K if I wanted to, but never had to. It works out much like team play using the same bank. I me and my can be doing several different things with the same dollar really getting it to work for me. Right now I am in blackjack, sports, real estate, and stocks, and working on a few different high leverage hign ROI sales areas. It can make you fearless, but I like to feel the fear and keep my respect of going broke. The stock market is run by greed and fear.

Keeping the balance,
RM